In the world of sales, there are often no right answers. What would you do in this tough sales situation? Make the call below, and see instantly how your judgment compares. Final results will appear in LBM Journal. Be sure to check back next month for a fresh Tough Call.

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Tough Call - Deal or No Deal

You're bidding on the biggest piece of business your city is likely to see in 2007. A competitor who will say or do anything to get the sale stands in your way.

It's no secret that you're in a hyper-competitive market. And you're fine with good, healthy competition. After all, it makes everyone work harder and smarter, and your community benefits from better products at fair prices.

But then there's Horse-Whip Building Supply. Bottom line: they play dirty, and will do or say anything to get the sale. The management at Horse-Whip seems to view business as a life-or-death cage match. Given this cut-throat company culture, you're no longer surpised when a customer--or potential customer--asks you to answer their claims.

You've always taken the high road in the belief that your quality and service will outlast their trash talking. That worked fine when the market was booming, but with new projects at a near standstill, you're not sure you can afford to keep playing fair. Here's why:

Bottom Line Builders, a modest-size production builder, just surprised your market by announcing plans for a subdivision of 110 entry-level homes. You've known Bob Bottom for years, and have been one of his primary suppliers. It's crucial that you get this sale. But the folks at Horse-Whip have pulled out all the stops. They are trying to buy the business with extremely aggressive pricing and promises they can't possibly keep, not to mention trash-talking your company. A buddy at Bottom Line tells you that the Horse-Whip folks took Bob to dinner at the best steakhouse in town, and worked hard to make him sign an agreement that night. Fortunately, Bob refused to sign until he talked to you.

While Horse-Whip's prices may be lower, you know that your quality and service will make you the true low-cost (and low-headache) provider.

You need this sale; your meeting with Bob is next week.

What do you do?

	Business As Usual:	Bob knows that you sell quality products at fair prices, and your service is unmatched. Ignore Horse-Whip, trust that Bob didn't buy into their trash talk, and treat this like any other opportunity.
	Experience Counts:	Help Bob realize that all the past projects you've done together make you especially well positioned to meet his needs on this new project--his biggest to date.
	Lock & Load	If Horse-Whip wants to play dirty, so be it. You've heard enough stories from their unhappy former customers to provide abundant ammunition. This isn't business; this is war. It's time to give them a taste of their own tactics.
	Match Their Price:	Sure, it will cut into your bottom line. But at least it will clear out some inventory and keep your guys busy. Sometimes you have to sacrifice profits for market share. This is one of those times.

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